Human Capital Disclosures

61 Pages Posted: 30 Jun 2022 Last revised: 25 Sep 2022

See all articles by Thomas Bourveau

Thomas Bourveau

Columbia University - Columbia Business School, Accounting, Business Law & Taxation

Maliha Chowdhury

Columbia University

Anthony Le

Columbia University

Ethan Rouen

Harvard Business School

Date Written: September 24, 2022

Abstract

We explore the recent landscape of quantitative human capital (HC) disclosures for publicly listed U.S. firms. Using a hand-collected sample of disclosures for 2,393 firms, we first provide detailed descriptive evidence about firms' HC disclosure in their ESG reports and 10-K filings. While only 22% of our sample publishes an ESG report, these reports contain much richer HC disclosures than do 10-Ks. Even so, an amendment to Regulation S-K that required firms to disclose more HC information had an economically meaningful effect on disclosure, although many firms seemed to shift information previously disclosed elsewhere. The increase in disclosure in 10-Ks post regulation is driven by metrics on diversity, equity, and inclusion, and employee turnover. Importantly, the amendment is associated with increased value relevance of the disclosures in the post-regulation period but only for firms disclosing financially material metrics in industries where human capital is said to be relevant to investors.

Keywords: Human Capital, Voluntary Disclosure, Mandatory Disclosure

Suggested Citation

Bourveau, Thomas and Chowdhury, Maliha and Le, Anthony and Rouen, Ethan, Human Capital Disclosures (September 24, 2022). Available at SSRN: https://ssrn.com/abstract=4138543 or http://dx.doi.org/10.2139/ssrn.4138543

Thomas Bourveau

Columbia University - Columbia Business School, Accounting, Business Law & Taxation ( email )

3022 Broadway
New York, NY 10027
United States

Maliha Chowdhury

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Anthony Le

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Ethan Rouen (Contact Author)

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-6275 (Phone)

HOME PAGE: http://www.ethanrouen.com

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